Free Minnesota Accident & Health practice questions

Answer: A. Not less than $100 nor more than $1,000

Minnesota Statutes section 72A.44 provides that a company violating section 72A.41, subdivision 1 must pay a penalty of at least $100 and at most $1,000 for each offense, recovered on behalf of the state. The $25-to-$300 range, the $250-to-$2,500 range and the $500-to-$5,000 range do not appear in section 72A.44.

Answer: A. The lines of authority under which the licensee is qualified

The statute requires the license to show the licensee's name, address and producer license number, the date of issuance, the lines of authority, and the expiration date, plus any other information the commissioner considers necessary. Appointing insurers, completed continuing education hours, and a date of birth or fingerprint number are not among the items the statute names.

Answer: C. 30 days after delivery

Minnesota requires a Medicare supplement policy that was sold other than through direct response solicitation to carry a prominent first-page notice giving the policyholder 30 days from delivery to return it and receive a full premium refund if dissatisfied for any reason. Ten days is the wrong number for this question: it appears only in the direct response version of the notice, where it is the time the insurer has to send the refund after receiving the returned policy, not the return window. Twenty days and 60 days do not appear in this free-look provision.

Answer: A. She is currently licensed as a resident, and in good standing, in her home state of Iowa

Minn. Stat. 60K.39, subdivision 1, lists the conditions for a nonresident producer license, and the first is that the person be currently licensed as a resident and in good standing in the home state. The other listed conditions concern submitting the proper request and either the home-state application or a Uniform Application, and the home state granting Minnesota residents nonresident licenses on the same basis. Passing a Minnesota examination, a minimum number of years licensed, and a Minnesota office are not among the listed conditions.

Answer: B. As a Minnesota resident, because her principal place of business is maintained in the state

Under Minn. Stat. 60K.37, subdivision 1, a person is a Minnesota resident if the person either resides in the state or maintains a principal place of business there. Dana meets the second test, so she qualifies as a resident even though her home is in Wisconsin. A rule that looks only at where a person lives ignores the principal place of business test, and the subdivision sets no minimum period of living in the state. The subdivision defines who is a resident person and says nothing about dividing residency by line of authority.

Answer: C. He is excused from both prelicensing education and the examination for those lines

Minn. Stat. 60K.40, subdivision 1, excuses an applicant previously licensed for the same lines in another state from prelicensing education and examination. The exemption is available if the applicant is still licensed there, or if the application arrives within 90 days of the prior license's cancellation and either the prior state certifies good standing or the NAIC Producer Database shows the producer is or was licensed in good standing for the line. Marcus applied on day 75 with database records showing good standing, so the exemption reaches both requirements. A current license is one route to the exemption rather than the only one, and the window is 90 days, not 30.

Answer: D. Barred, because the emblem may reasonably suggest government certification

Minnesota prohibits displaying a graphic seal or emblem, on a long-term care policy or in promotional materials used to solicit it, when the image may reasonably be expected to convey that a state or local government unit, the federal government, or a federal agency approved, endorsed, or certified the policy form. The test is the impression the emblem may reasonably create, not whether it is an exact copy of an official seal. The ban reaches solicitation materials as well as the policy, and the statute gives no exception for a form filed with the commissioner.

Answer: C. All of it, together with the Part A inpatient coinsurance amounts

The extended basic plan must pay the entire Medicare Part A inpatient hospital deductible, as well as the Part A inpatient coinsurance amounts and the full Part A eligible hospitalization expenses that Medicare leaves unpaid. It therefore does not leave the deductible to the insured, does not split it with the insured, and does not condition the payment on a separate plan deductible.

Answer: D. It may adopt rules consistent with those sections and their purpose

Section 72C.12 gives the commissioner, in addition to the powers stated elsewhere in sections 72C.01 to 72C.13, the power to promulgate rules that are consistent with those sections in order to carry out their purpose. Because the rules must be consistent with the statute, they cannot override it. The grant is a rulemaking power, so it is neither limited to advisory guidance nor absent.

Answer: C. It is prohibited as an unfair or incomplete comparison of policies

Minnesota Rules, part 2790.1700 bars an advertisement from making unfair or incomplete comparisons of policies or benefits, whether directly or indirectly, and from unfairly disparaging competitors or their policies. A comparison that shows only the competitor's weaker benefits and drops the stronger ones is incomplete even if each listed item is accurate. Because the rule covers indirect as well as direct comparisons, it does not depend on the competitor being named, and the rule contains no exception for advertisements filed in advance with the commissioner.